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The Mauritius Financial Services (Exemption from Approval of Controllers and Beneficial Owners) (Revocation) Rules 2020

Insight 9 December 2020

The Mauritius Financial Services (Exemption from Approval of Controllers and Beneficial Owners) (Revocation) Rules 2020

As issued by the Mauritius Financial Services Commission

On 22 October 2020, the FSC issued The Financial Services (Exemption from Approval of Controllers and Beneficial Owners) (Revocation) Rules 2020 (the “New Rules”) which revoked the Principal Rules. The New Rules shall be deemed to have come into operation on 9 July 2020.

The FSC, on 19 January 2017, issued the Financial Services (Exemption from Approval of Controllers and Beneficial Owners) Rules 2017 (the “Principal Rules”) which clarified that the requirement to seek approval of the FSC under Section 23 (1) of the Financial Services Act 2007 of Mauritius (the “Act”) shall not apply to an issue or transfer of shares or legal or beneficial interest in a licensee which do not carry voting rights.

Pursuant to changes brought to the Act by the Anti-Money Laundering and Combatting the Financing of Terrorism (Miscellaneous Provisions) Act 2020, Section 23(4) of the Act was amended to clarify that the requirement to seek approval of the FSC under Section 23(1) of the Act, shall not apply to the following class of licensees in respect of the issue or transfer of the type of shares that do not carry voting rights:

  • CIS or CEF, as authorised under the Securities Act; and
  • reporting issuers, registered under the Securities Act, that do not hold an activity licence for a licensable activity but whose securities are listed on a Securities Exchange in Mauritius.

The approval of the FSC in respect of the issue or transfer of shares or legal or beneficial interest, whether or not they carry voting rights, in a FSL will be required as from 9 July 2020, save for the class of licensees which have been exempted under Section 23(4) of the Act (as listed in section B above). Approval will further not be required but only a notification, if the change is less than 5% unless the change in shareholding or beneficial interest results in a change of control.

Click here to access the new rules
Click here to access the principal rules (revoked)

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